US Senate Advances Affordable Housing Bill
The US Senate advanced a bipartisan bill to encourage affordable housing development.
The bill, known as the Affordable Housing Credit Improvement Act, aims to expand and strengthen the Low-Income Housing Tax Credit (LIHTC). This program incentivizes private developers to build affordable housing units. The legislation would increase the allocation of tax credits by 50%. It would also reduce the 50% test, which requires projects to obtain half their funding from tax-exempt bonds to qualify for credits, down to 25%. Senators Todd Young (R-IN) and Maria Cantwell (D-WA) are key sponsors of the bill. Cantwell noted that the bill could finance over 607,000 additional affordable housing units over the next decade. The National Apartment Association also supports the bill. They believe it will address the nation's shortage of affordable housing.
